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HomeMy WebLinkAbout08/19/1997, C-1 - MINUTES MEt,jNG AGENDA DATE - fIl ITEM # C� MINUTES SPECIAL JOINT MEETING OF THE CITY COUNCILS OF THE CITIES OF ARROYO GRANDE, ATASCADERO, GROVER BEACH, MORRO BAY, PASO ROBLES, PISMO BEACH SAN LUIS OBISPO THURSDAY, JUNE S, 1997 - 7:00 P.K. CLIFF'S HOTEL, 2757 SHELL BEACH ROAD PISMO BEACH, CALIFORNIA 1. CALL TO ORDER The meeting was hosted by the Cities of Arroyo Grande, Grover Beach and Pismo Beach. Mayor John Brown chaired the meeting and called the meeting to order at* 7:05 p.m. 2. INVOCATION: Pastor Ehrhardt Lang, First United Methodist Church, provided the invocation. 3. PLEDGE OF ALLEGIANCE: 4. ROLL CALL: All Councilmembers were present as follows: City of Arroyo Grande: Mayor A.R. "Pete" Dougall, Council- members Michael Lady, Michael Fuller, Thomas A. Runels and Steve Tolley City of Atasoadero: Mayor Ray Johnson, Councilmembers Harold L. Carden III, George Luna, Jerry L. Clay, Sr. , and Kenneth Lerno City of Grover Beach: Mayor Robert Reed, Councilmembers Dee Santos, Henry E. "Gene" Gates, Peter Keith and Ronald Arnoldsen City of Morro Bay: Mayor Cathy Novak, Councilmembers Rodger Anderson, Dave Elliott, William Peirce and Janice Peters . City of Paso Robles: Mayor Duane J. Picanco, Councilmembers Tom Baron, Walter J. Macklin, Lee Swanson and Christian E. Iversen City of Pismo Beach: Mayor John C. Brown, Councilmembers Marian Mellow, Hal Halldin, Bill Rabenaldt and Mary Ann Reiss City of San Luis Obispo: Mayor Allen K. Settle, Council- members Bill Roalman, Dave Romero, Kathy Smith and Dodie Williams e4-� Minutes of Joint San Luis Obispo County Cities Meeting June 5, 1997 Page 2 City Staff Presents City Manager Robert Hunt, Arroyo Grande; Interim City Manager Robert Grogan, Atascadero; City Manager John Bahorski, Grover Beach; City Manager David Howell, Morro Bay; Interim City Manager James App, Paso Robles; City Manager Michael Fuson, Pismo Beach; City Administrative Officer John Dunn, San Luis Obispo; City Attorney David Hunt, Morro Bay & Pismo Beach; City Clerk Sharon Jones, Pismo Beach 5. WELCOMING COMIVIIIV'TS: Mayor John Brown introduced guests and .invited them to speak. David Thompson, Senior Field Representative from the El Segundo office for U.S. Senator Barbara Boxer, noted that they have six offices within the State, and the primary responsible office for this area is in Fresno. The Northern California Director is Thomas Bohigian who is in the Fresno office. They are both available to meet directly on Federal issues. Liz Giffin, Field Representative from the Santa Barbara office for Congressman Walter Capps (22nd Congressional District) , noted that Congressman Capps was in Washington DC this evening. She stated that they have three offices, Santa Barbara, San Luis Obispo and Washington DC, and anyone can meet with her when she is in town. She stated that if there is ever a need with the Federal government, to please contact their local office. Lorraine Duenez, Field Representative from the San Luis Obispo office for State Senator Jack O'Connell (18th Senate District) , wished the Cities a productive meeting. She stated that should anyone ever need assistance with State matters to call her at the San Luis Obispo office, as she does the Senator's calendar for appointments. Rock Zierman, Field Representative. from the San Luis* Obispo office for State Assemblyman Tom Bordanaro (33rd Assembly District) , stated that he is willing to work with anyone on any issue. He noted that Tom was interested in the agenda items regarding tax restoration and PG&E's accelerated depreciation, and will assist where he can. Supervisor Harry Ovitt, San Luis Obispo County Supervisor, asked that he be allowed to speak on specific items as they come up on the agenda. 6. PUBLIC CONIIVM T PERIOD: (No comments received for items not on the agenda) Minutes of Joint San Luis Obispo County Cities Meeting June 5, 1997 Page 3 7. ACTION ITEMS: 7-A LEGISLATION REGARDING CITY REVENUE NEEDS AND RESTORATION OF REVENUES TAKEN BY TH8 STATE (Mayor Allen Settle, San Luis Obispo) Mayor Allen Settle, San Luis Obispo, reviewed the report and resolution in the packet, beginning on page 7A-1. He stated that this issue is open. for discussion and he hoped the cities would support the resolution. He noted that a revised resolution had been handed out this evening that deletes reference to the County of San Luis Obispo because only the seven cities are voting on the resolution tonight. Brief discussion was held. Mayor Settle made a motion to approve Resolution No. R-97-01 as revised to delete reference to the County. The motion was seconded by Councilmember Williams. PUBLIC COMMENT: Bob Blair, Nipomo Community Services District Director, noted that money was also taken from the special districts. Harry Ovitt, County Supervisor, was displeased that the County was eliminated from the resolution. He noted that we all have a common cause. He suggested an amendment to the resolution that the County of San Luis Obispo be included. He felt that this would be consistent with what the League of California Cities is doing at the State level to have Cities and Counties become partners. Discussion was held. Dave Hunt, City Attorney, clarified that because this is a joint meeting of the seven cities, technically, we can't include the County as a voting body. He suggested an alternative to address Supervisor Ovitt's. concerns by including all special districts, county and cities. 7-A ACTION(S) : On amended motion of Mayor Settle/Councilmember Williams, Resolution No. R-97-01, a resolution of the seven city councils in the County of San Luis Obispo was adopted concerning the restoration of property taxes taken away by the State of California from 1992 through 1994, as amended to include all Cities of San Luis Obispo County., all special districts, and the County of San Luis Obispo. Motion passed unanimously by all cities (5-0) , except Paso Robles voted (4-1-0., Councilmember Baron opposed) . The County of San Luis Obispo was encouraged to adopt a similar resolution of the Board of Supervisors. Minutes of Joint San Luis Obispo County Cities Meeting June 5, 1997 Page 4 7-B URBAN RESERVE LINE (Mayor Allen Settle, San Luis Obispo) Mayor Settle, San Luis Obispo, presented report and asked that the cities support the establishment of a subcommittee of city and county representatives to explore the possibility of a formal agreement with the County to coordinate land use consistencies for unincorporated urban development adjacent to but outside of established city urban reserve lines. Discussion was held. Mayor Picanco, Paso Robles, didn't feel it would have any impact for Paso. Mayor Johnson, Atascadero, didn't see a problem with looking into it but it may be a mute point for their city. Councilmember Romero, San Luis Obispo, was not in favor of it and questioned whether it would be effective. Councilmember Halldin, Pismo Beach, felt that this might cause another agency to have control over Pismo's boundary, and he was opposed to it. Further discussion was held. Upon question, Mayor Settle commented that this subcommittee would be advisory only. PUBLIC COMMENT: George Layman, resident of the county, near Arroyo Grande, noted that they can't vote for people in the City but have a County Board member representing them. , He was not in favor of another group making decisions for them. Jerry Dagno, resident of the county since 1984, was strongly opposed to this and urged the cities to vote no. He stated that we already have an agency elected by the voters of SLO County and this is where the decision should stay. Bob Blair, Arroyo Grande, could not support this but was not for urban sprawl either. He felt that the people that live in Nipomo like to live on acreage. Jacauline Frederick, Nipomo farmer, felt that if this subcommittee is formed, the public should be welcomed to the meetings to give input, and the property owners should be listened to. She felt that agricultural use is very important. Diane Hull, San Luis Obispo, and Chair of the Edna Area Group, stated that the "green belt" proposal that has been discussed in the past was not well received. She was concerned over the City of San Luis Obispo having too much control over the County property owners outside the green belt but along the city limits. She felt it may sacrifice agriculture. She noted that Measure O was turned down by the voters to buy additional land around the city for open space. She requested that the Edna Area Group be included in this subcommittee. Minutes of Joint San Luis Obispo County Cities Meeting June 5, 1997 Page 5 Beverly Chapman, Nipomo Community Network, had no formal recommendation from this body but, personally, she felt that we already have elected representatives. She felt that being only an advisory body is frustrating. Their group tries to influence decisions also, and she felt that any input at their meetings would be accepted and much appreciated, rather than this proposed advisory body based on cities. Ed Sauer, Nipomo, addressed the constitution and private property rights. He felt that this would put influence over them but they wouldn't have any influence over the cities. Doug Jones, Nipomo Community Services District Manager, stated that their land area takes up a lot of land. He was not for or against this but would like to see special districts included in the subcommittee. Supervisor Ovitt, San Luis Obispo County, didn't want the County eliminated from this subcommittee. He would strongly support cities, county and special districts be represented as well as private property owners. He also didn't want to forget LAFCO. Supervisor Ryan, San Luis Obispo County, felt that this was already being done in every city. He stated that the County has to represent the people outside the city limits. He felt the cities and the County could work together on a city-by-city basis, and he didn't see it as a county-wide issue. Mayor Settle stated that the purpose is to assure land use consistencies, and he felt that this could help promote agriculture preservation. He agreed that community services districts and land owners should be included. . Discussion was held among the cities. Mayor Picanco, had concerned with it. Mayor Johnson, Atascadero, felt that each city's concerns could be broadly different and had mixed emotions on what this may accomplish. Mayor Dougall, Arroyo Grande, felt it was a city-by- city problem and could be better dealt with. Mayor Reed, Grover Beach, had a problem with another layer of bureaucracy. Mayor Novak, Morro Bay, agreed and felt it was unnecessary. After further discussion, a motion was made by Mayor Settle, seconded by Councilmember Gates, to establish a subcommittee of City representatives, County representatives, Special District representatives, and property owners, to explore the possibility of agreements with the County for land use consistencies with respect to unincorporated urban development adjacent to but outside of established city urban reserve lines. The motion failed on the following roll call votes: Arroyo Grande: unanimously opposed; Minutes of Joint San Luis Obispo County Cities Meeting June 5, 1997 Page 6 Atascadero: 4 opposed, Councilmember Lerno supported the motion; Grover Beach: 3 opposed, Councilmembers Gates and Reith supported; Morro Bay: unanimously opposed; Paso Robles: 4 opposed, Councilmember Iversen supported; Pismo Beach 3 supported, Councilmembers Halldin and Rabenaldt opposed; San Luis Obispo: 3 supported, Councilmembers Roalman and Williams opposed. The motion failed--no further actions were brought forward. 7-C PG&E ACCELERATED DEPRECIATION OF DIABLO CANYON (Mayor Novak of Morro Bay introduced County Administrator Robert Hendrix to make a presentation) For the record, at 8:20 p.m. Councilmember Carden, Atascadero, stepped down for item 7-C due to a possible conflict of interest. At 8:35 p.m. Councilmembers Iversen and Baron and Mayor Picanco, Paso Robles also stepped down due to a possible conflict of interest. Bob Hendrix, County Administrator, reviewed a resolution concerning support of San Luis Obispo County and San Luis Coastal Schools efforts to obtain relief from the damaging loss of property tax revenue as an unintended consequence of electric utility restructuring in California. He asked that each city take the resolution back to their city council to discuss and act on it at a later time. He further reviewed the negative effects that electric utility restructuring will have on our county. He noted that this area will be effected greatly--$61.2 million will be lost over the remaining life of the nuclear plant. They have been working with the PUC, the local legislature and at the national level to try to get some relief. He urged every city's support of this resolution. He noted that this effects our county more than any other county in the State. For the record, at 8:35 p.m. Councilmembers Iverson, Baron and Mayor Picanco of Paso Robles stepped down from voting on this matter due to a possible conflict of interest. Mayor Novak, Morro Bay, stated that she would like to adopt this tonight. Discussion was held. Mayor Settle motioned to approve the proposed resolution (No. R-97-02) ; motion was seconded by Councilmember Gates. Further discussion was held. Mayor Brown, Pismo Beach, felt that we should accept this for information purposes and send it back to each city council for action. PUBLIC COMMENT: ��G Minutes of Joint San Luis Obispo County Cities Meeting June 5, 1997 Page 7 Bill Crockett, Arroyo Grande, Manager at Diablo Canyon Nuclear Power Plant, felt that deregulation was a great law. It will help the customers. He noted that there are different parts of this bill. This bill requires P.G.& E. to divest, allowing them to accelerate depreciation of the outstanding construction costs at Diablo. He felt that it had a lot of benefits. He stated that beginning this coming January, customers in California will have a choice to get electricity from suppliers. P.G.& E. rates will be reduced 10 percent for residents. He noted that there will be a $8.5 million savings per year for the residents in this county. He felt that we needed to look at the bigger picture and look at the total revenue that comes to this county. He felt that the County should be encouraged to continue to work with P.G.& E. to look for a legislative solution to this. They do not agree with the figures that the County mentioned. He noted that the formula-to determine taxes will expire, and we don't know what the tax base will be. 7-C ACTION(S) : After further discussion and on motion of Mayor Novak/Councilmember Santos, to have each city take a look at this resolution regarding loss of property tax revenue due to electric utility restructuring in California as soon as possible, and if in favor, approve it and pass a copy onto the Governor and Legislature. Motion passed unanimously by Arroyo Grande, Grover Beach, Morro Bay, Pismo Beach and San Luis Obispo (5-0) ; Atascadero motion passed (4-0-1, Councilmember Carden stepped down) ; Paso Robles motion passed (4-0-1, Councilmember Iverson stepped down) . For the -record, Mayor Picanco, Paso Robles, stated that they did not have a. conflict on this item. Recess was held from 8:55 p.m. to 9:15 p.m. 7-D COUNTY WIDE SALES TAB (Mayor Reed of Grover Beach introduced City Manager John Bahorski to make presentation) John Bahorski, Grover Beach City Manager, reviewed the agenda report. He referenced page 7-D-5 concerning alternatives. Discussion was held. Mayor Reed, Grover Beach, commented that this would only be an advisory group. He hoped that every city would consider it. Mayor Novak, Morro Bay, did not want to limit ourselves to just a sales tax measure. She mentioned the possibility of a gas tax. Further discussion was held. Mayor Reed commented that we should limit this to transportation issues. Mayor Dougall, Arroyo Grande, felt that along with discussing options, we should review how we're spending the money that we get now. He felt that we were taxed enough. We also need to look at who will control this money. Councilmember Fuller, Arroyo Grande, asked how the funds would be distributed and who would control the process. Councilmember Lady, Minutes of Joint San Luis Obispo County Cities Meeting June 5, 1997 Page 8 Arroyo Grande, concurred with the Mayor. Mayor Johnson, Atascadero, noted that they have a funding shortfall for roads in their city. He felt we should consider looking broader at all alternatives. He had some suggestions for ways to reword the resolution. He had concerns with the distribution of the tax; however, he was in favor of forming a subcommittee. Councilmember Luna, Atascadero, requested the resolution be modified to evaluate all alternatives. Councilmember Carden, Atascadero, concurred but also requested the distribution look at a mix of sales tax, point of sale, population and road miles. Mayor Picanco, Paso Robles, supported a subcommittee to evaluate this but he also had some concerns about another tax. He was also concerned with the sales tax distribution. Councilmember Macklin, Paso Robles, felt that it should be distributed as "point of need" and regional significance. Councilmember Baron stated that we should try to get back the one cent from the State. He felt this would help us more. We don't need more taxes on our people. Supervisor Harry Ovitt, County of San Luis Obispo, felt the subcommittee should look at all the options of funding in terms of distribution and look at the political ramifications of getting a ballot measure passed. Supervisor Mike Ryan, County of San Luis Obispo, felt this subcommittee should go forward, assess all options and include the County. Councilmember Rabenaldt, Pismo Beach, did not want to touch the transient occupancy tax (TOT) . This tax is very sacred. Councilmember Halldin, Pismo Beach, felt another way would be to have assessment districts. They have worked in Pismo. Mayor Picanco, Paso Robles, did not support an additional tax. He felt that we will charge ourselves into an economic down turn. Council- member Mellow, Pismo Beach, felt that a sales tax may not be the only way or the best way. We have to consider other sources. She agreed that getting back the one cent from the State would be the most desirable. Councilmember Gates, Grover Beach, stated that he did not support a 1/2 cent sales tax. He felt that the best way to get the money we need is on our own. He also felt that the Governor may decide to take any additional taxes too. Councilmember Arnoldsen, Grover Beach, felt that TOT is another viable option to review. Councilmember Reith felt it was worth exploring even though he was fundamentally opposed to additional taxes. If our constituents decide that they want to take on an additional tax, then that's what they'll do. Mayor Reed commented that assessment districts are not feasible any more due to Prop. 218. He suggested some changes to the proposed resolution to address broader transportation issues. Councilmember Romero, San Luis Obispo, felt that every city needs more money, and we need to look at every option. He also had some rewording for the resolution. Mayor Settle, San Luis Obispo, felt we needed to clarify distribution of the tax and do this before it goes to the voters. Councilmember Roalman, San Luis Obispo, referenced page 7- D-8 of the packet. He felt that one approach would be to put the Minutes of Joint San Luis Obispo County Cities Meeting June 5, 1997 Page 9 tax revenue generated into the general fund to be used for roads because a special tax takes a two-thirds vote. Councilmember Williams, San Luis Obispo, was willing to support a subcommittee. She was less inclined to support a general tax and felt that it should be a special tax. The distribution is a major issue. Further discussion was held. Mayor Novak, Morro Bay, supports formation of a committee to explore all options. Councilmember Peirce, Morro Bay, agreed with Peter Keith to ask the general public at the ballot. He also noted we need to educate the people, and it must be done at the County level. Councilmembers Anderson. Peters and Elliot concurred. Mayor Brown referenced the numbers on page 7-D-8. He noted that millions are needed to improve the . streets and roads, and it's a serious problem. PUBLIC COMMENT: J. Frederick, Nipomo, felt the cause was important and had no objection to paying taxes. However, he would support the Mayor of Arroyo Grande's suggestion to seriously look at how you're spending your current dollars. Jerry Dacna, San Luis Obispo, felt that we would have a hard time convincing people to approve this in San Luis Obispo. He noted there is no doubt that the money is needed but the City builds bike lanes instead of repairing the roads. Bob Rose, concurred with some of the comments made regarding no more taxes. He noted that 43 percent of the people live in the County. He felt that a general tax was doomed to failure. He felt that the only tax that might pass would be a special tax but it has to have a sunset clause, not beyond five years. Bob Blair, Arroyo Grande, was opposed to a gas tax. He stated that cities are already getting the license share of DMV fees. He felt that too much money was spent on studies, and it should be put into asphalt. Diane Hull, resident of San Luis Obispo, stated that first, taxes were for roads--let's make them a priority in each budget. The roads should be right along with public safety. Let the taxpayers decide if they want to be taxed for non-necessities. She suggested looking into consolidating deferred maintenance into one bond issue to allow everyone to get current with a plan to stay current with maintenance. Minutes of Joint San Luis Obispo County Cities Meeting June 5, 1997 Page 10 Ed Sauer, Arroyo Grande, felt that we used to have the best roads in California but the money got lost and the roads went to pot. George Layman, County resident, stated that every year property tax goes up and every year they take money from the engineering department. He felt the most important things in our cities were police, fire and roads. He felt it was time that the cities starting spending its money properly and go back to privatizing some things. Clifford Smith, Atascadero, felt that the public is saying that you need to look internally at the efficiency of your operations before you raise new taxes. He questioned the standards for general road maintenance. B. Chapman, Nipomo, stated that she would be in favor of any committee that would want to go to the State to get us back our taxes but she felt that it was a losing battle. George Rile, Arroyo Grande, felt we should do a time study on some of the personnel. He would like to eliminate the bureaucracy by cutting on the top and the bottom. Ron DeCarli, Director of SLOCOG, stated that SLOCOG just completed a Street & Road Maintenance Needs Study showing a backlog of transportation needs county wide totaling $52 to 140 million. This study helps to document the problem. We really need to look at all options. He noted future State and Federal funding is very limited. He noted preliminary results from a public opinion poll showed up to 60% public support for a 1/2 cent sales tax increase for street and road maintenance. He would like to see a steering committee developed to address the problem and look at funding solutions. Brief discussion was held. Upon question regarding SB 325 concerning unmet transit needs, he stated that currently there is $5.5 million per year--45 percent is going to streets and roads and the balance goes to public transit. 7-D ACTION(S) : After further discussion and on motion of Mayor Novak/Mayor Reed, to form a subcommittee with a representative from the City Council and/or City Manager of each SLO County City, a member of the County Board of Supervisors, a representative from the County Administrator's Office and a member of SLOCOG staff to explore funding sources for needed road maintenance and rehabilitation. The subcommittee would be expected to present a recommendation within six months or by the next 7 Cities Meeting. Motion passed unanimously by Arroyo Grande, Atascadero, Morro Bay, Pismo Beach and San Luis Obispo (5-0) ; Paso Robles voted. (4-0-1, Minutes of Joint San Luis Obispo County Cities Meeting June 5, 1997 Page it Councilmember Iversen absent) and Grover Beach voted (4-1-0, Councilmember Arnoldsen opposed) . 8-A PUBLIC-EDUCATION-GOVERNMENT (PEG) ACCESS ON CABLE TV (Mayor Novak, Morro Bay, introduced Jeannie Burlingame) Jeannie Burlingame, Morro Bay, addressed PEG access on Cable TV. She stated that Cities and the County would contract for management of PEG access channels. For Morro Bay, it's $100,000 for funding and this is not economically feasible. She handed out some flyers from Estero Community Access and a Conceptual Model for San. Luis Obispo County-wide PEG Access as information. Harvey Levenson, Consortium member, felt that this was a "quality of life" issue. It's information for the community about the community. He stated that if you support it, it will happen. He asked for support of the concept at least. Jeannie Burlingame asked cities to discuss the regional program and whether you support a regional PEG. She would like to see support for the consortium and set up a meeting in July. She would like to have support of a draft MOU to get it going. Brief discussion was held. PUBLIC COMMENT: Ellen Sterts, County Grant Administrator, stated that they are not allowed to put additional tax on small satellite dishes or the wireless systems. Christopher Cocoroccio urged the cities to allow this to happen. He is currently working on a film to support the community. He felt that problems needed to be addressed through communication. He noted that there are 950 stations within the country, and PEG is a tool to help the community. He will be traveling to Washington D.C. next to gain support for this and if anyone has something to send along, to let him know. No action was taken on item 8-A--received as information only. 8-B E.V.C. - ECONOMIC VITALITY CORPORATION (Mayor Novak, Morro Bay, introduced Dr. Susan Cotler, Economic Vitality Corporation Chairperson Dr. Susan Cotler, Chair of the EVC Board of Directors, gave a brief overview of the function of EVC and gave a progress report. She reviewed their mission statement. She addressed revolving loans through CDBG funds. They do business attractions, regional Minutes of Joint San Luis Obispo County Cities Meeting June 5, 1997 Page 12 planning, i.e. economic development. . She noted that cities get an excellent product for a low-cost fee. She stated that they have recently worked with the City of Grover Beach. She urged participation in the EVC through having a representative from each city. There are six to eight participating currently. She noted that the City Managers have a package of materials highlighting the EVC. She went through the material. Discussion was held. No action was taken on item 8-B--received as information only. 8-C AB 939 WASTE DIVERSION GOALS (Mayor Brown, Pismo Beach, introduced Mr. William Worrell, Manager of the Integrated Waste Management Authority "IWMA") Bill Worrell, IWMA, addressed AB 939, California Integrated Waste Management Act (1989) and reviewed a handout. Brief discussion was held. He noted that a resolution will be coming to each City to consider. No action was taken on item 8-C--received as information only. 9. ADJOURNMENTS There being no further business to come before the Cities, Mayor John Brown adjourned the meeting at 11:10 p.m. Respectfully submitted, Sharon Jones, City Clerk City of Pismo Beach CLOSED SESSION OF THE CITY COUNCIL CITY OF SAN LUIS OBISPO TUESDAY,JULY 8, 1997-6:30 P.M. COUNCIL HEARING ROOM, 990 PALM STREET SAN LUIS OBISPO,CALIFORNIA ROLL CALL: Council Members Present: Council Members Kathy Smith, Dave Romero,Dodie Williams,Vice Mayor Bill Roalman,and Mayor Allen Settle City Staff Present: Jeff Jorgensen, City Attorney; John Dunn, City Administrative. Officer, Ken Hampian, Assistant City Administrative Officer, Neil Havlik, Natural Resources Manager City Council held a closed session to discuss the following issues: CONFERENCE WITH LEGAL COUNSEL - Existing Litigation - pursuant to Government Code § 54956.9: Feierabend v.City of San Luis Obispo Negotiations are ongoing CONFERENCE WITH LEGAL COUNSEL Existing Litigation-pursuant to Government Code 54956.9: Korns v. City of San Luis Obispo Negotiations are ongoing CONFERENCE REGARDING PROPERTY NEGOTIATIONS - Pursuant to Government Code ¢ 54956.8: Foundation for the Performing Arts' property adjacent to the railroad tracks between Lawrence Dr.and Francis Ave. Council authorized negotiation for acquisition of property. At 7:00 P.M. Mayor Settle declared a recess to convene in open session in the Council Chamber, where a public report of the action taken in closed session was to be given. Bonnie L.Gawf,City Clerk APPROVED BY COUNCIL: 8/19197 BLG:dr MINUTES ADJOURNED REGULAR MEETING OF THE CITY COUNCIL CITY OF SAN LUIS OBISPO TUESDAY,JULY 8, 1997-7:00 P.M. COUNCIL CHAMBER,990 PALM STREET SAN LUIS OBISPO, CALIFORNIA ROLL CALL: Council Members Present: Council Members Kathy Smith, Dave Romero, Dodie Williams,Vice Mayor Bill Roalman,and Mayor Allen Settle City Staff Present: John Dunn,City Administrative Officer, Jeff Jorgensen, City Attorney; Bonnie Gawf, City Clerk; Ken Hampian, Assistant City Administrative Officer, Mike McCluskey; Public Works Director, Arnold Jonas, Community Development Director, Bill Statler, Finance Director, Al Cablay, Public Works Manager, Al Cablay, Public Works Manager, Terry Sanville, Transportation Planner, Keith Opalewski,Parking Manager; Neil Havlik, Natural Resources Manager CLOSED SESSION ANNOUNCEMENT City Attorney Jorgensen announced that the Council held three closed sessions, beginning at 6:30 p.m.this evening,as follows: CONFERENCE WITH LEGAL COUNSEL - Existing Litigation - pursuant to Government Code 54956.9: Feierabend v.City of San Luis Obispo Negotiations are ongoing CONFERENCE WITH LEGAL COUNSEL-Existing Litigation -pursuant to Government Code §54956.9: Korns v. City of San Luis Obispo Negotiations are ongoing CONFERENCE REGARDING PROPERTY NEGOTIATIONS - Pursuant to Government Code 54956.8: Foundation for the Performing Arts' property adjacent to the railroad tracks between Lawrence Dr. and Francis Ave. Council authorized negotiation for acquisition of property. PUBLIC COMMENT PERIOD PC1. There were no public comments. STUDY SESSION Council Member Smith stated that she will be stepping down during the discussion, as recommended by the FPPC, because of a potential conflict of interest due to the mention and prominence in the report of the expansion of the Marsh Street Parking structure. 1. DOWNTOWN ACCESS AND PARKING STUDY (File No.554) Council considered the Downtown Access and Parking Study Progress Report No.2. Mayor Settle outlined the format for tonight's discussion, noting that formal presentations would be made by representatives from both sides of the issue. Public Works Director McCluskey introduced the item, giving a history of the expansion of the parking structure and the study of alternative forms of downtown access. n City Council Meeting Page 2 Tuesday,July 8,1997-7:00 p.m. Lam Patterson, Meyer Mohaddes Associates, outlined the process used to develop the progress report and the steps needed to draft a final plan. He outlined the three major areas included in the plan: TDM to make existing spaces available for short term parking demand; Parking Management to make better use of existing spaces; and Parking expansion to increase the number of spaces downtown. He listed six parking management strategies: 1. Reduce free parking from 90 minutes to 60 minutes 2. Eliminate maximum daily charge 3. Increase number of ten hour meters in the Study Area periphery 4. Reduce number of free parking passes issued S. Consider a residential parking management plan in impacted neighborhoods 6. Provide preferential parking location and pricing for carpools and vanpools Mr. Patterson gave specific recommendations for parking expansion: 1. Construct Marsh Street expansion 2. Construction a new parking structure that will serve the northeast quadrant of the study area 3. Construct"Palm 11"structure 4. Construct a new structure in the western portion of the study area S. Identify other sites Council Members discussed the growth assumptions which were used to project the number of parking spaces which will be needed in the future. Council concurred that the final report should include clarification of these numbers. Peter Valk,Transportation Demand Management Services, presented aspects of the transportation demand management portion of the recommendation. He outlined seventeen measures which were identified and prioritized, with the six high and five medium scoring measures—designated in the report as the"maximum TDM program"—as follows: 1. Designate passenger pick up/discharge zones throughout downtown 2. Expand bike lanes 3. Enhance local codes to permit working at home 4. Adopt compressed work weeks for City and County employees 5. Lower parking rates in undenitilized parking by time of day 6. Adopt TDM facilities requirement for new development 7. Lower vanpool fares 8. Adopt telecommuting among City and County employees 9. Preferential parking for car/vanpools in public parking 10. Increase parking rates for long term parkers 11. Reduce parking charges based on vehicle occupancy Mr. Patterson clarified that the recommendations will most likely provide for the middle range of projected growth. He outlined estimated costs of the alternatives and presented the following funding recommendations: 1. Reserve existing parking revenues exclusively for parking expansion 2. Increase parking revenues through reduced free parking, higher in lieu fees, periodic adjustment of parking rates and fines 3. Apply a portion of new revenues toward TDM programs 4. Seek other funding sources: public/private partnerships, assessment district, TDM Grant funding S. Use General Fund revenues (if necessary)to initiate and maintain TDM programs Mayor Settle opened the floor for public comment. e-l-Ir City Council Meeting Page 3 Tuesday,July 8,1997-7:00 p.m. Eugene Jud. Transportation Planner, 743 Pacific Street, stated that, as a business owner, he is in favor of downtown business, but that he is opposed to additional parking, because he believes there is no downtown parking crisis. He stated that traffic should not grow at a rate of more than 1% per year,and that his group does not agree with anything contained in the report. He said that the shop owners and employees take up many prime spaces downtown. Craig Anderson. Sierra Club, said that the two factions never reached consensus on the Marsh Street Garage expansion and the use of the parking fund for TDM programs. He stated that additional parking structures cost too much, and noted that many spaces are taken up by employees. He detailed costs per space for construction of downtown garages and outlined the TDM measures he prefers: a parking management district, parking shuttle, leasing lots for long term parkers in the periphery and providing shuttle service via an electric transit system. He stated that he does not favor expansion of the bike lanes,as it is not highly cost effective. Tom Fulks. SLO Regional Rideshare Program, stated that the report contains many solutions to questions that have been raised, and Council should carefully read the study document rather than relying on the staff report. He favors Alternative Number 4 from the study, stating that it is affordable and realistic. Mark Shaffer, Ride-on Transportation Services, stated that he favors a combination of TDM and additional parking spaces to solve the parking problem downtown. He stated that employers have become more involved in ride share programs. He asked the Council to find a way to fund the TDM measures,and budget additional funds in the future. Mike Spangler, BIA Parking Committee, stated that the basic understanding behind the parking enterprise fund is that it should only be used for the construction and acquisition of parking sites. He said that the merchants are not opposed to TDM, but that the funding should not come from the parking fund. He said well designed parking structures are the best solution to the problem, and noted that the parking study does not address the retail and office value of the Marsh Street parking structure. He said that the report should address the full potential of the value. He suggested other funds be raised for TDM. Deborah Holley. BIA Administrator, addressed areas of concern to the BIA in the progress report: the importance of tourism was not adequately addressed; opinions were included in the survey that were not those of individuals in the downtown; report does not note that the automobile is becoming more environmentally friendly; and the reason the BIA declined to participate in parking study is not included. She reviewed the parking requirements for development in the City. Ken Schwartz, SLO, stated that the task should be how to keep the downtown viable and prosperous. He said there needs to be a way to provide more retail space, and that is to make efficient parking structures which include retail space. He reviewed the history of the development of the current parking structures. Pierre Rademaker, BIA, reviewed the Downtown Master Plan and the reasons behind the design of the plan. He gave specific examples of under utilized spaces in the downtown area. Tunny Ortali, SLO, said the Marsh Street expansion and Palm 11 structure are needed as soon as possible. He said the funds are available. Richard Ferris, SLO, spoke in favor of using the enterprise fund only for additional parking. He asked Council to start using one-third of the parking resources to enforce parking times and encourage neighborhood panting. Jim Sargen, 570 Marsh, spoke in favor of additional parking, which would include additional retail spaces. L'--/-!4 City Council Meeting Page 4 Tuesday,July 8, 1997-7:00 p.m. Joseph DeLucia, 1042 Palm, #202, said that national retailers are currently unable to locate in downtown SLO because of the parking situation. He spoke in favor of using the parking enterprise fund only for additional parking,and finding an alternative funding source for TDM. Dave Kastner, 958 Higuera, said as a downtown business owner he is already losing customers because of the lack of parking. Marty Tangeman, SLO, stated that the report invites divisiveness. He said that alternative transportation deserves separate treatment and separate funding and asked that Council direct the consultant to separate TDM funding from parking. He noted that the parking in lieu fee should be used solely for parking and parking operations, based on past actions of the council. He said that fee increases will have negative impacts. Mark Saroen. 751 Marsh Street, stated that the parking fund should only be used to produce additional parking spaces. He noted that there is currently a shortage of parking for his customers at the Forum. Dale Anderson. SLO, Property Manager, spoke as a representative of three downtown property owners. He stated that their concerns are to maintain the viability of the downtown, and that the use of the downtown parking fee should only be used to provide additional parking spaces. Shelly Stanwvck Director of Governmental Affairs of the SLO Chamber of Commerce, stated that the Chamber advocates maximizing the downtown parking situation by adding more spaces as soon as possible. She noted that the Chamber supports the use of TDM measures, but asked Council to further explore the details presented in the study. Dick Cleevespresented a petition from downtown property owners requesting that Council continue to support the downtown parking in lieu fee concept. Sam Blakesleestated that additional parking structures are needed downtown. He identified statistics and assumptions included in the study,which he believes are in error. Allan Cantrell. Atascadero, Regional Transit Authority, stated that his agency would like to work with the City to establish TDM programs. Dennis Johansen, 766 Higuera, encouraged the Council to move ahead with the Wells Fargo lot purchase. He spoke in favor of providing additional downtown parking. Pat Veesart. Sierra Club, spoke in support of providing TDM measures and said that it is appropriate to pay for those measures from the downtown parking fund. He asked Council to implement additional TDM measures before building additional structures. Larry Allen, Air Pollution Control District, encouraged Council to study the report. He said people come downtown because they enjoy the environment, and the report addresses different ways to get people to the downtown. He asked council to implement TDM first. He supported Alternative 4 in the study. Keith Wimer, Los Osos, stated that the downtown is a unique environment, and asked Council to consider alternative forms of getting people to town to preserve the atmosphere. Ira Winn spoke in favor of the increased emphasis on TDM addressed in the report. He spoke in opposition to additional parking. Richard Kranzdorf,SLO,stated that there is a need for TDM measures, not more parking. c-1-17 City Council Meeting Page 5 Tuesday,July 8,1997-7:00 p.m. Tom Swenn. SLO, Real Estate Broker, stated that there is an opportunity for development of offices and retail in the downtown. He spoke in favor of moving forward with the expansion of the garages and utilizing existing surface lots for development. Dick Kreisa, SLO, stated that the parking fund should be used for whatever makes the downtown more comfortable, and that may include TDM measures. Pete Eberle, SLO, Coordinator for the Thursday Night Farmers Market, stated that SLO does not have the consumer base to support elaborate TDM measures. He supported additional parking for the downtown area. Manor Settle returned discussion to the Council. After discussion, moved by Romero/Roalman to direct consultant to review, amend and refine report based on comments received from the Council and the public, and prepare a recommendation utilizing a phased format to prepare a plan, specifically with the phasing based upon a review of the underlying growth assumptions; to direct staff to continue the process toward construction of the Marsh Street structure expansion; and to direct the consultant to bring back options on funding mechanisms; motion carried (4-0-1, Smith not participating due to a conflict of interest). ADJOURNMENT There being no further business to come before the City Council,Mayor Settle adjourned the meeting at 11:45 p.m. to Tuesday, July 15, 1997 at 7:00 p.m. in the Council Chamber, 990 Palm Street, San Luis Obispo. APPROVED BY COUNCIL: 8/19/97 BG:dr Bonnie L.Gawf,City Clerk SUBCOMMITTEE TO THE CULTURAL HERITAGE COMMITTEE CITY OF SAN LUIS OBISPO TUESDAY,JULY 9, 1997-12:00 P.M. COUNCIL OFFICE-CITY HALL-990 PALM STREET SAN LUIS OBISPO,CALIFORNIA ROLL CALL: Council Subcommittee: Council Member Kathy Smith and Mayor Allen K.Settle Council Member Smith called the meeting to order at 12:00 p.m. Alice Loh, CHC Chair, was also present. The following individuals were interviewed to fill three existing vacancies: Loren Nicholson,Robert Pavlik,Amy Kardel, Paula Juelke Carr and Delphine Silva. 1:30 p.m. There being no further business to come before the Council Subcommittee, Council Member Smith Settle adjourned the meeting. APPROVED BY COUNCIL: August 19, 1997 MINUTES REGULAR MEETING OF THE CITY COUNCIL CITY OF SAN LUIS OBISPO TUESDAY,JULY 15, 1997-7:00 P.M. COUNCIL CHAMBER,990 PALM STREET SAN LUIS OBISPO, CALIFORNIA ROLL CALL: Council Members Present: Council Members Kathy Smith, Dave Romero, Dodie Williams,Vice Mayor Bill Roalman,and Mayor Allen Settle City Staff Present John Dunn,City Administrative Officer,Jeff Jorgensen,City Attorney; Bonnie Gawf, City Clerk; Ken Hampian, Assistant City Administrative Officer, Arnold Jonas, Community Development Director, Bill Statler, Finance Director; Jim Gardiner, Police Chief, Bob Neumann, Fire Chief; John Moss, Utilities Director; Mike McCluskey; Public Works Director; Paul LeSage, Parks and Recreation Director; Ron Whisenand, Development Review Manager, Judith Lautner, Associate Planner; Neil Havlik, Natural Resources Manager; Kathy Koop, Recreation Manager; Wendy George, Assistant to the CAO; Harry Watson,Transit Manager PUBLIC COMMENT PERIOD PCI. There were no public comments CONSENT AGENDA Council Member Romero asked that Item C9 be removed from the Consent Agenda for discussion, and he registered a "no vote on item C14 because he does not believe the transportation fund should be used for this purpose. Moved by Smith/Williams to approve the Consent Agenda, except Item C9, as recommended by the City Administrative Officer; motion carried C1. MINUTES Council considered the minutes of: Tuesday,July 1,1997 Moved by Smith/Williams to waive oral reading and approve minutes as amended; motion carred C2. STREET SEAL COAT PROJECT (File No.97-07) Council considered plans and specifications for"Street Seal Coat Project," Specification No. 97-07; engineer's estimate$270,000. Moved by SmithWilliams to approve plans and specifications, authorize staff to advertise for bids, and the City Administrative Officer to award the contract if the lowest responsible bid is within the budget; motion carred (5-0). C3. DIGESTER#2 REPAIR PROJECT (File No.97-09B) City Council Meeting Page 2 Tuesday,July 15,1997-7:00 p.m. Council considered plans and specifications for "Water Reclamation Facility Digester #2 Repair," Specification No.97-0913;engineer's estimate$149,000,Including contingencies. Moved by Smith/Williams to approve plans and specifications, authorize staff to advertise for bids, and the City Administrative Officer to award the contract if the lowest responsible bid is within budget; motion carried (5-0). C4. DESIGN SERVICES-WATER REUSE PROJECT(File No.97-08A) Council considered a Request for Proposals for design of Water Reuse Project and associated engineering services at a cost of$700,000. Moved by SmithiWilliams to approve RFP and authorize soliciting of proposals; motion carried (5- 0). C5. STATE REVOLVING LOAN-WATER REUSE PROJECT(File No.517) Council considered an application for State Revolving Fund Loan for the Water Reuse Project. Moved by Smith/Williams to adopt Resolution No. 8693 authorizing staff to apply for a low interest loan from the State Water Control Board; motion carried (5-0). C6. WATER RESOURCES STATUS(File No.517) Council considered the 1997 Water Resources Status Report which includes four major topics: 1) Existing Water Supply Status; 2) Multi-Source Water Supply Projects; 3) Water Conservation Program; and,4)Projected Water Supply Situation. Moved by Smith/Williams to receive and file; motion carried (5-0). C7. PARK NAMING (File No.815) Council considered naming the City park site located between 860 and 910 Vista del Collados Drive Priolo-Martin Park; motion carried(5-0). Moved by Smith/Williams to approve Priolo-Martin Park naming; motion carried (5-0). C8. LIBRARY JOINT POWERS AGREEMENT AMENDMENT(File No.571) Council considered an amendment to the City/County Library Joint Powers agreement to increase library hours of operation by reopening the library for three hours on Wednesday evenings for the 1997-99 fiscal years in exchange for annual payments of$12,500 and$12,900. Moved by Smith/Williams to authorize the Mayor to execute the amendment; motion carried (5-0). C9. ECOSLO AGREEMENT (File No.484) Council considered a two-year professional services agreement with the Environmental Center of San Luis Obispo County (ECOSLO)for public information and retainer services of up to $21,500 per year,for a total of$43,000 over the two-year life of the agreement. Moved by Roalman/Smith to approve and authorize the Mayor to execute the agreement; motion carried (3-2, Romero,Williams opposed). City Council Meeting Page 3 Tuesday,July 15, 1997-7:00 p.m. C10. LAND CONSERVANCY AGREEMENT(File No.487) Council considered a two-year consultant services agreement with the Land Conservancy of San Luis Obispo County for continued consultant services of up to$10,000 per year,for a total of$20,000 over the two-year life of the agreement Moved by Smith/Williams to approve and authorize the Mayor to execute the agreement; motion carried (5-0). C11. BIA EMPLOYMENT AGREEMENTS (File No.471) Council considered employment agreements for the BIA Administrator and Thursday Night Activities and Promotions Coordinator. Moved by SmithWilliams to adopt Resolution No. 8694 approving the contracts; motion carried (5- 0). C12. PARKING LOT CLEANING (File No.97-32) Council considered an amendment to the parking lot cleaning contract with Sean's Sweeping Service to extend the contract for a one-year period and include additional cleaning services. Moved by SmithWilliams to approve and authorize the CAO to execute the contract in the amount of$57,600; motion carried (5-0). C13. PROPERTY TAX EXCHANGE AGREEMENT (File No.441) Council considered an agreement with the County of San Luis Obispo for sharing the property tax revenues and annual tax increment for the Prefumo Creek Homes Annexation(1855 Prefumo Canyon Road). Moved by SmithWilliams to adopt resolution accepting the negotiated exchange of property tax revenues and annual tax increment; motion carried (5-0). C14. PROPERTY ACQUISITION (McCLUSKEY/168) Council considered authorizing the purchase of Foundation for the Performing Arts Center(FPAC) property, located between Lawrence Drive and Francis Avenue,for the sum of$56,541 for a future bike path. Moved by SmithWilliams to authorize purchase, appropriate $65,000 from the Transportation Impact Fee Fund for property purchase and miscellaneous expenses, and authorize the CAO the sign the purchase documents and deed upon successful conclusion of property investigation and closing of escrow(4-1, Romero opposed). APPOINTMENT Al. CULTURAL HERITAGE COMMITTEE (File No. 123) Council considered appointments to three unexpired terms ending on 3131198, 3131199 and 313112001. City Council Meeting Page 4 Tuesday,July 15,1997-7:00 p.m. Moved by Smith/Settle to appoint Paula Juelke Carr to an unexpired term ending 3/31/2001, Loren Nicholson to an unexpired term ending 3/31/99 and Robert Pavlik to an unexpired term ending on 3/31/98 and to thank Dan Krieger,John Edmisten and Bruno Giberti for their service to the Cultural Heritage Committee; motion carried(5-0). PUBLIC HEARINGS 1. APPEAL-61 BROAD STREET (File No.407) Council held a public hearing to consider appeals of an Architectural Review Commission action to approve remodeling of, and addition to, an existing building, development of an assisted care facility,and modifications to landscaping at 55&61 Broad Street(Heritage at Garden Creek). Associate Planner Lautner presented the staff report, giving a brief history of the project and the ARC approval process and summarizing the conditions which have been met by the applicant Mayor Settle opened the public hearing. Jake Feldman, 711 Murray St, appellant, stated that the assisted care facility is a welcome addition to the neighborhood, but that he is concerned that the height and mass of the building is too great for the surrounding homes. He presented aerial views and a model of the proposed project He noted the residential nature of the neighborhood and illustrated the additional height of the proposed building. He asked the project be referred back to the ARC for further modification. Hamish Marshall, 555 Ramona Dr., applicant, stated that he has tried to address the concerns of the residents. He noted that no variances are being requested. He gave a history of the approvals granted by the Planning Commission,ARC and the City Council. Bill Calabrese presented a video showing an animation of a drive by of the proposed project. Mike Peachev, 444 Higuera, presented renditions of the view of the project from homes currently located across the street. He noted that moving the facility to another location on the site is not feasible and has already been explored as part of the project Bill McLennan. 706 Meinecke, stated that there is a concern about commercialization of the neighborhood. He asked Council to send the project back to the ARC to give them the chance to see the model. John Keebler, 111 South St., stated that the model is accurate, as is the computer generation. He noted that not having landscaping included on the model, changes the look of the project considerably. He said, even though it is accurate in a technical sense, the model does not really represent the project. Mike Peachey. 592 Stoneridge, Apex Architects, stated that the design elements that have been incorporated in the building are meant to address neighbors' concerns. He said the project will actually reduce the amount of traffic in the neighborhood. Jack Witter, Lafayette, Ca.,IMndchime Group,stated that the sixty-four unit size allows the facility to retain the residential feel, while allowing the project to be large enough to be economically viable and serve the true needs of the frail elderly. Lloyd Dietrich, 55 Broad, 9119, spoke in support of the project, stating that the building will be visually appealing. City Council Meeting Page 5 Tuesday,July 15,1997-7:00 p.m. Imogene Ewan. 55 Broad, #304, resident of The Village, spoke in favor of the project, stating that an assisted living facility is needed. She presented a petition containing 1300 signatures supporting the project. Bill Storm.3057 Higuera,#96,stated that an assisted living facility Is necessary. Madelyn Ropner, 721 Murray, said she is concerned about the commercialization of the neighborhood, and asked that the project be scaled down to two stories. She read a letter from Don Coberg,who was unable to be at tonight's meeting,and is opposed to the size of the project. Jan Scuri.64 Broad,appellant,spoke in opposition to the size and mass of the project,stating that it places the residential feel of the neighborhood in jeopardy. Barry Franz.79 Benton Way,stated that the building should be scaled down further and asked that the Council refer the project back to the ARC. City Attorney Jorgensen noted that the Council approved the project subject to the ARC approval, and the ARC has taken final action and approved the project. He said that sending the project back to the ARC based on new information presented tonight may be inappropriate. Flo Tartaglia, 70 N. Broad, stated that she is still concerned with the height and mass of the building next to a residential neighborhood. Jim Burrows. 849 Monterey St., Project Landscape Architect, stated that the model does not show existing landscaping nor additional shrubs and ground covers which will be installed, so does not represent a true picture of the project. Sandra Bagnall. 160 Broad Street, spoke in support of an assisted care facility in the neighborhood, but stated that the size and mass of the proposed building are too large and overpower the neighborhood. Marty Tangeman, SLO, noted that compatibility is the issue, and the proposed project is not compatible with the neighborhood context. Crissa Hewitt,39 Benton Way,stated that the pictures and video presented are deceptive, and that she believes traffic will be an issue,and the size of the building is a problem. Alec Pananides. Santa Barbara, Managing Partner, addressed comments made by previous speakers, stating that some of the comments were erroneous. He asked Council to deny the appeal. Patrick Smithapplicant,stated that conditions have been met and asked Council's approval. Bill Calabreseexplained the still renditions and answered why the elevations were chosen,stating that N the shots had been taken from the front of the house,the third story of the proposed project would not be visible. Jake Feldman,stated that the video shows the height accurately, but shows a wide angle view and omits the homes,so it does not show the context of the neighborhood. Mayor Settle closed the public hearing. Moved by Roalman to uphold appeal; motion died for the lack of a second. After discussion, moved by Roalman/Smith to uphold the appeal by requiring a two story building. e'1'e2T City Council Meeting Page 6 Tuesday,July 15,1997-7:00 p.m. City Attorney Jorgensen noted that to reduce the density of the project, specific findings must be made and that the issue before the Council tonight is whether the applicants have met the standards as outlined and if the use compatible to the site. Council Member Smith withdrew her second. After discussion, moved by Williams/Romero to adopt Resolution No. 8696 denying the appeal and upholding the Architectural Review Commission's action; motion carried (4-1, Roalman opposed). Mayor Settle called a recess at 9:00 p.m.,then reconvened the meeting at 9:10 p.m. Council Member Smith noted that she will be stepping down from the next two items to avoid a potential conflict of interest. 2. PCC GRANTS-IN-AID FOR 1997-98 (File No.1051) Council held a public hearing to consider the Promotional Coordinating Committee's recommendations for 1997-98 grants4n-aid. Assistant to the CAO George presented the staff report Patty Brown.PCC Chairperson,gave details of the recommendations for the grants. Mayor Settle opened the public hearing. Jeff Bague. 697 Higuera, County Arts Council, asked Council to reconsider funding a grant for the Arts Council. Frederick Balazs. 680 Morro, Music&Arts for Youth (MAY), asked Council to fund his organization at the same level as the previous year. Mayor Settle closed the public hearing. Assistant to the CAO George stated that it is a little premature to grant funding to the County Arts Council, but that holding the reserve for public art might be the best solution. After discussion, moved by Roalman/Settle to adopt Resolution No. 8697 authorizing funding to 34 agencies in the amount of$80,215 for fiscal year 1997-98. After further discussion, the motion was amended to include an additional $500 for MAY from the reserve and to direct staff to bring back a recommendation regarding funding for the County Arts Council; motion carried (4-0-1, Smith not participating). 3. HRC GRANTS-IN-AID FOR 1997-98 (File No.1051) Vice Mayor Roalman noted for the record that he is a volunteer for the Friends of the Library, but has no financial interest in the organization. Council Member Williams noted for the record that she is on the board of LIFESPAN,but has no financial interest in the organization. Council held a public hearing to consider the Human Relations Commission recommendations for 1997-98 grants4n-aid. Recreation Manager Kooa presented the staff report. Mayor Settle opened the public hearing. City Council Meeting Page 7 Tuesday,July 15,1997-7:00 p.m. Walter Wane, Friends of the City-County Library,thanked the Council for the grant,stating that the Library has a need for the additional funding. Mayor Settle closed the public hearing. After discussion, moved by RomeroNVilliams to adopt Resolution No. 8698 authorizing funding to 38 agencies, and increasing the recommended funding for the following agencies LIFESPAN- Senior Peer Counseling to $1700; Literacy Council (Homeless) to $1,200; and SLO Friends of the Library to$1,500, in the amount of$90,800 for fiscal year 1997-98; motion carried (4-0-1, Smith not participating). By consensus, Council directed staff to schedule a joint meeting with HRC this fall (September or October). Council Member Smith returned to her seat at the dies. 4. APPEAL-297 MADONNA ROAD (File No.407) Council held a public hearing to consider an appeal by Heritage Oaks Bank of a Planning Commission action to deny use of an existing unused drive-up window for an automated teller machine(ATM)at a bank located at 297 Madonna Road; Heritage Oaks Bank,applicant. Community Development Director Jonas presented the staff report Mayor Settle opened the public hearing. Victor Montgomery, 3701 S. Higuera, spoke on behalf of the applicant He noted that, though it wasn't being used, the drive through use has been operative up until April, 1997 when Great Western Bank moved out He asked Council to uphold the appeal. Mayor Settle closed the public hearing. After discussion, moved by Roalman/Smith to adopt a resolution denying the appeal and upholding the Planning Commission's action; motion failed (2-3, Romero, Williams, Settle opposed) Moved by Romero/Wlliams to adopt Resolution No. 8699 approving an appeal of the Planning Commission's action, thereby approving use of a drive-through window at 297 Madonna Road; motion carried 3-2(Smith, Roalman opposed). 5. APPEAL-896 FOOTHILL BOULEVARD (File No.407) Council held a public hearing to consider an appeal by New Frontiers Natural Foods of an Architectural Review Commission action to deny an exception to use a "billboard" sign for a grocery in the University Square shopping center at 896 Foothill Boulevard; New Frontiers Natural Foods,applicant Community Development Director Jonas presented the staff report. Mayor Settle opened the public hearing. Marshall Ochvlski, 979 Osos, applicant, presented an illustration of the proposed project and noted that the corporate logo covers only a small area. He stated that the County Arts Council supports his proposal. City Council Meeting Page 8 Tuesday,July 15,1997-7:00 pm. Jonathan King. President of New Frontiers, stated that stores are dependent on tourism and that maintaining the sign is imperative for his business. Susan Beatie, past president of the County Arts Council,spoke in support of the appeal. Jeff Bague,697 Higuera,spoke in support of the appeal. Peggy Mandeville, Architectural Review Commission, gave a brief review of the Commission's unanimous vote to deny the billboard. John Phillips. 892 Foothill Blvd., University Square Representative, presented Council with twenty letters from area merchants in support of the appeal. Mad! Gates. 125 Serrano Heights, stated that the City's sign regulations should be followed and that she is opposed to the appeal. Arlene Zanchuck. 26 Chorro,spoke in opposition to the appeal, and suggested that the applicants paint the facade of the building. Mayor Settle closed the public hearing. After discussion, moved by Roalman/Smith to adopt Resolution No. 8700 denying the appeal and upholding the Architectural Review Commission's action; motion carried (41, Romero opposed). BUSINESS ITEMS 6. YOUTH ATHLETIC FIELDS (File No.826) Council considered 1) affirming the CAO recommendation to suspend further discussions concerning a joint project with Cal Poly; 2) review and amend the list of alternate site outlined by the Parks and Recreation Director, and, 3) direct staff to proceed with the study of proposed sites and return to Council with a specific recommendation and work plan for completing a project to develop youth athletic fields for the City. Parks and Recreation Director Paul LeSage presented the staff report. Mayor Settle opened the floor for public comment. Bill Thoma. SLO, thanked the City Council for their recognition of the need for sports fields and asked them to move ahead with the identification of a location. Mary Beth Schroeder,2085 Wilding Lane,thanked Council for suspending discussions regarding a joint project with Cal Poly and suggested that the City ask the State to donate a portion of Camp San Luis for youth athletic fields. Joe Cardoza. SLO, Representative for the Martinelli Family, asked Council to consider purchasing his client's property to build sports fields. Mayor Settle returned discussion to the Council. After discussion, moved by Williams/Roalman to affirm CAO recommendation to suspend further discussions concerning a joint project with Cal Poly; motion carried C-l'do City Council Meeting Page 9 Tuesday,July 15,1997-7:00 p.m. Moved by Smith/Williams to review alternate sites; and direct staff to proceed and return to Council on September 16 with a specific recommendation and work plan for completing a project to develop youth athletic fields for the City; motion carried (5-0). 7. CAL POLY TRANSIT AGREEMENT (File No.541) Council considered a Cal Poly/SLO City Transit agreement for the period of July 1997 through June, 2001 to subsidize student ridership. Public Works Director McCluskey presented the staff report. Mayor Settle opened the floor for public comment. Richard Kranzdort.SLO,stated that this agreement may cause less bus ridership by students and increased traffic on campus. Mayor Settle returned discussion to the Council. After discussion, moved by Romero/Williams to authorize the Mayor to execute the agreement; motion carried (5-0). C9. ECOSLO AGREEMENT (File No.484) Council considered a two-year professional services agreement with the Environmental Center of San Luis Obispo County (ECOSLO)for public information and retainer services of up to $21,500 per year,for a total of$43,000 over the two-year life of the agreement. Council Member Romero stated that ECOSLO has not lived up to their contract. Council Member Smith noted that this agreement will help insure performance. Moved by Roalman/Smith to approve and authorize the Mayor to execute the agreement; motion carried (3-2, Romero,Williams opposed). COMMUNICATIONS Comm1. Vice Mayor Roalman asked if Council would support directing staff to evaluate the equity of current water and sewer impact fees,and there was consensus among Council Members to give that direction to staff. Comm2. Mayor Settle noted that next Tuesday, July 22nd is the open house for the new Prado Day Center. COUNCIL LIAISON REPORTS CLR1. Council Member Smith reported that the Student Housing Task Force met and appointed five subcommittees to study various options for solutions to student housing needs. CLR2. Council Member Williams reported that she attended the Human Relations Commissions meeting on July 2, and that they are considering using a recently completed EOC needs assessment survey to identify community needs within the City. She said that the HRC would like to schedule a joint meeting with the Council this fall. CLR3. Council Member Romero showed graphs illustrating the dramatic results of the City's Green Waste Diversion Program. `-141 City Council-Meeting Page 10 Tuesday;July 15, 1997-7:00 p.m. Therebeing.no further business to come before the City Council,Mavot Settle adjoumed the meeting at 11:35 pi-ri-to Tuesday,August 19;1997 at 7:00 p.m. in the Council Chamber, 990'Palm-Street; San Luis Obispo. APPRO_WE D_ BY COUNCIL:8119%97 BG dr Bonnie.L-:Gavd,.City Clerk e / oil